The Intel-Israel Cooperation

Published: January 25th 2011
in Economics » Israel

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Additional $10 billion buyback


There is no doubt that "Intel Corporation" (NASDAQ – INTC) was one of yesterday's stars on Wall-Street. Intel announced that it’s extending its buyback plan by additional $10 billion, the total buyback of shares will be $14 billion.


When a corporation declares a buyback there are few immediate consideration; the corporation has a positive cash flow; the corporation thinks that the shares are relatively cheap; the corporation believes in itself and foresees future growth. Intel's market capacity after yesterday’s closure was nearly $118 billion. The shares performed a remarkable comeback. In early 2009 you could buy Intel shares for around $13. Today they are over $21.


Happy Israeli employees


7,000 Israeli are very happy this morning. They work for Intel in its research, development and production centres. Intel announced a surprising 2010 year-end bonus to its employees. Each employee will be rewarded by 3.2 month’s worth of salary, which is equivalent to $14,000-22,000 per employee.


The announcement is a fair play by Intel. After all, its profits in 2010 surged by 167 per cent and there are additional $11.7 billion on its balance sheets.


An impressive cooperation


Intel started to operate in Israel in 1974. Israel has played a very important role in the history of Intel and recently Intel announced that it will invest $2.7 billion in FAB 28, one of Intel major production plants in southern Israel.


The Israeli government, who views the development of its relatively remote regions as highly important, will contribute NIS 741 million ($205 million USD) to Intel.


Intel committed to employ 3,100 employees in FAB28 and will increase its investments in academic research.


This is not the first mutual agreement between Intel and the Israeli government. Future agreements are probably a question of time.


Employing students


Intel Israel offers job options to young Israelis during their studies. The corporation offers flexible working hours that enable the students to accomplish their studies, make a living and also get experience in the labor market. Dozens of positions are currently open in the Research and Support departments.


Management in Israel


The "head" behind Intel in Israel is Mrs. Maxine Fassberg. Fassberg is the Vice President of the Technology and Manufacturing Group. She is the FAB 28 Kiryat Gat plant manager, and of course the general manager of Intel-Israel. Fassberg joined Intel in 1983.


Intel plants and centres in Israel


Intel operates six centres in Israel. Two production plants are located in Jerusalem and in Kiryat-Gat north of Beer-Sheba. Four research and development centres are located in Haifa, Jerusalem, Yakkum and Petach-Tikva.


Greening Haifa


Intel has decided to build its first "Green Building" in the port city of Haifa. The building will be constructed with accordance to one of the highest American LEED standards and will get a "Gold" rating.


The "Gold" rating was given after six parameters were inspected: Preserving the environment; efficient water system; energy and air conditioning; materials and resources, quality of the working environment and interior design innovations.


The building in Haifa, also known as IDC9, will be used as data centre and about 1,000 of Intel employees will work in it.

Related articles: (Intel, Israel, Stock)

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